Q1 2020 Earnings Call

That's again.

Welcome to the Air Group reports Q1 2020 results Conference call Today's conference is being recorded.

This topic.

Thomas Jonsson Assistant General Counsel. Please go ahead Sir.

Thank you Cody and good morning, everyone.

Welcome to parents third quarter teach me earnings call.

Your today with our president and CEO perceptual.

You can see another beautiful Wayne.

It's competing general counsel please.

Let me remind everyone that during the call.

They make forward looking statement.

There are subject to risks and uncertainties.

Right.

It's like Threed.

But you got your presentation.

You may access our investor presentation on our website.

Doctors dot com.

Further your as filed with the FCC registration statement that's for the.

The joint proxy statement era industry.

Thanks.

Investors are urged to carefully.

James important information about.

Transaction.

Nipping at Flopping unbelievable without George I've, yet to see website I call in Europe.

That's right.

Europe is still in certain of their respective director executive officers, maybe deemed to be consistent.

Situation the talking.

And just to stockholders.

Exactly.

Got you may begin to be a PC.

Midstream information.

Good morning simulation.

It was directly.

Because all the true yes anyway.

Okay.

Now I'll turn the call, which once again CEO.

Yeah.

Thank you Thomas and welcome to the color one.

I will begin on prepared remarks.

Which is Eric most important core values.

Operational.

Yes, we used to report that Eric or Google.

Yes.

And your recordable workplace.

You could be 2020.

I want to see income then all of our air team members for their contributions to our safety performance.

Yeah modestly in Iraq in the last four years.

Now gone over 950 executive.

Recordable incident.

This is world class.

It anymore.

And it is even more.

Given the numerous potential disruptions.

Other than the world.

Today.

As always we remain committed to places speaking first every day.

Well I spoke to this audience in March.

Do you have to procedures.

Let's talk or.

Helping them at this.

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I believe our team has done an excellent job preparing early.

And successfully managing through change and uncertainty over the last few months.

Our Q1 financial results will not materially impacted by 90 outbreak.

Okay.

Well, we have seen African beginning in Q2.

It's it's abuse, a man shop and substantial excess supply.

Some challenging conditions in the oil and gas industry shift for the foreseeable future.

Visibility remains very limited.

I forget the timing or shape eventual industry recovery.

Fortunately.

Our strong balance sheet efficient cost structure and experience managing three industry downturns.

Youre welcome paired to navigate through these difficult conditions.

I'll now turn it over to our CFO will review Q1 financial results Jennifer.

Thank you Chris.

Thank god destined to special items.

[laughter] 2020.

It's a 13.7 million in the fourth quarter.

This decrease was primarily due to lower revenues and noncash foreign currency was a 1.79.

Excluding the impact.

Foreign currency.

For the either so I wouldn't think 10 million in the correct.

Revenue decreased 3.3 million, primarily due to the end of emergency response and dry leasing contract.

Well, our revenues from oil and gas.

Operating expenses were 1 million lower.

Personnel maintenance.

General and administrative expenses were 1.4 million higher due to increased professional service fees and other costs related to be expected merger.

The cost related to the second or have been treated especially.

Please refer to the earnings release for more detailed description of the special items in the reconciliation of non-GAAP metrics.

Moving on to the first quarter 2020, compared to the first quarter 29.

Adjusted EBITDA was 2.79.

Current your quarter revenues were 5.8 million higher due to higher utilization in oil and gas services.

That's not new emergency response.

Okay.

Operating expenses were 1.8 million higher primarily due to increased personnel and other expenses related to increased activity in the current airport.

General and administrative expenses were 3.9 million higher in the current your quarter.

Increased professional service fees other costs related to me.

Finally, the first quarter, it's typically areas, we can quarter for cash flow generation.

Even with the industry headwinds merger related costs.

First working capital and sacrifice Moran.

Breakeven adjusted free cash flow energy.

As of Q1, 20, Carney, Eric total liquidity was approximately 238 million, including 114 million or cash.

This time I'll turn the call back room for further and.

Chris.

Thank you Jennifer.

The current industry challenge challenges further strengthens rationale for second merger.

The combined company will be larger more diversified.

We wouldn't takes all others that are not causing a little markets.

We expected cost savings of at least $45 million, the only create substantial value for shareholders.

Also position the combined company better deal with the difficult challenges oil and gas industry is likely to experience for someone to though.

Yeah, Eastland, though that the transactions processed.

Yes.

Integration planning well underway.

We now expect to close the merger why did you.

With that let's open the lines for questions.

Thank you if he'd like to ask a question.

He said what pressing star one on your telephone keypad, if you're using speakerphone. Please make sure. Your mute function is turned out to layer signal to retreat.

He was called wonderful money well indicates one drilling has been opened once again that a star one if you'd like to ask a question on pause for just a few moments flies when an opportunity to signal.

Once again that is star one actually like to ask a question.

And once again I just star one if you'd like to ask a question.

And at this time, we'll go ahead and trying to kind of stuck over to arrangement for additional closing remarks.

Thank you Kelly appreciate it.

So I never won this may likely be let's call. It was that all their group I want to thank all of.

The opportunity just want to quarterly basis over the last several years lots been an honor and pleasure and the before to the combination of personal right and that's what you're thinking more about that the merits of the transactions and it doesn't rationale for the combined company I suppose that merger expected next month.

Okay.

Thank you, but does create for today's conference. Thank you all for your participation.

Correct.

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